Busi 490 Intensive Study Guide Graded A+

What is the expropriation of minority shareholders? {Ans: activities that enrich the controlling shareholders at the expense of the minority shareholders}What is the second stage of the industry life cycle? {Ans: growth - characterized by 1) strong increase in sales, 2)growing competition, 3) developing brand recognition, 4) a need for financing complementary value-chain activities (marketing, sales R&D)}Quadrants 3, 5, & 7 of the IE matrix suggest what strategies? {Ans: Hold and maintain (market penetration, product development)}What is a back-solver dilemma? {Ans: A problem with investment decisions in which managers scheme to have a project meet investment approval criteria, even though the investment may not enhance firm value}What is the resource based view of the firm? {Ans: perspective that firms' competitive advantages are due to their endowment of strategic resources that are valuable, rare, costly to imitate, and costly to substitute}What is Ambidexterity? {Ans: the challenge managers face of both aligning resources to take advantage of existing product markets as well as proactively exploring new opportunities}